GREENPOWER.NS WACC - Weighted Average Cost of Capital

The WACC of Orient Green Power Company Ltd (GREENPOWER.NS) is 12.8%.

The Cost of Equity of Orient Green Power Company Ltd (GREENPOWER.NS) is 15.25%.

The Cost of Debt of Orient Green Power Company Ltd (GREENPOWER.NS) is 11.75%.

	Range	Selected
Cost of equity	13.10% - 17.40%	15.25%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	8.10% - 15.40%	11.75%
WACC	10.5% - 15.1%	12.8%

WACC

GREENPOWER.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.76	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	17.40%

Tax rate	30.00%	30.00%
Debt/Equity ratio	0.53	0.53
Cost of debt	8.10%	15.40%

After-tax WACC	10.5%	15.1%


Selected WACC	12.8%

GREENPOWER.NS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for GREENPOWER.NS:

cost_of_equity (15.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.76) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.